PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles Hallinan

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles Hallinan

, 77, of Villanova, Pennsylvania, had been sentenced right now to 168 months in federal jail and ordered to pay for a $2.5 million fine associated with a scheme to get vast sums of bucks in illegal financial obligation acquired from high-interest loans. In November 2017, a federal jury convicted Hallinan of most 17 counts of unlawful conduct the federal government charged with its superseding indictment: two counts of conspiracy to break the Racketeer Influenced and Corrupt Organization Act (“RICO”); one count of conspiracy to commit mail fraudulence, cable fraudulence, and cash laundering; two counts of mail fraudulence and aiding and abetting; three counts of wire fraudulence and aiding and abetting; and nine counts of international cash laundering and aiding and abetting.

Hallinan, a previous investment banker, was at the payday financing company from at the very least 1997 to 2013. Dubbed “the Godfather of payday lending” because of the news during their test, Hallinan owned, operated, and financed organizations that issued small-amount, fixed-fee loans and collected debts on these loans more than $690 million. The loans had been understood in the market as “payday loans” because borrowers usually took them away to protect costs after which reimbursed the key, plus costs and interest, along with their next paychecks or other income that is steady such as for instance social safety payments. Hallinan made their unlawful fortune by recharging fixed charges and interest that is high far more than the thing that was allowed under states’ usury guidelines.

“Charles Hallinan, an enhanced, highly educated businessperson, ended up being nothing but that loan shark whose business that is entire ended up being constructed on trapping their victims in a endless financial obligation period,” said U.S. Attorney McSwain. “For years, this defendant unabashedly preyed on those that could minimum manage it—struggling borrowers whom made these loans frequently to cover life’s necessities. He bet their life style in the undeniable fact that we’d perhaps perhaps perhaps not get him. He destroyed that bet,” McSwain commented. “Now, it is time for Hallinan to repay the only currency to his debt we shall accept: his freedom and their fortune, amassed at his victims’ expense.”

The us government proved at test that Hallinan knew these loans violated state legislation, so he hid their individual participation behind a number of “straw” loan providers, including a bank that is federally-insured three Indian tribes. Hallinan’s co-defendant, Delaware attorney Wheeler K. Neff, assisted Hallinan in structuring the scam and Hallinan’s that is hiding participation. Neff ended up being sentenced in might 2018 to eight years’ imprisonment for their component within the scheme.

“Charles Hallinan devised a way that is ugly make a pretty penny,” stated Michael T. Harpster, Unique Agent in control of the FBI’s Philadelphia Division. “This multimillionaire lived big regarding the profits of their sleazy lending that is payday, constructed on the backs of men and women literally residing paycheck to paycheck. Excessive charges and interest that is usurious had been the title associated with the game, and Hallinan constantly stepped away the champion. Well, maybe not this time around. Now he’s walking away in handcuffs, headed to federal jail.”

The government sought and obtained a significant forfeiture judgment against Hallinan, which will strip him of the trappings of success he acquired as a result of his unlawful conduct as part of the sentence imposed today. The district court ordered the defendant to cover a forfeiture cash judgment of simply over $64 million as profits for the RICO conspiracy, and in addition ordered him to forfeit their curiosity about about $1.2 million in funds in 18 bank records; two Mercedes Benz cars; one Bentley car; along with his Villanova mansion.

“IRS Criminal research is dedicated to making use of our forensic accounting skills to simply help unravel complex fraud that is financial cash laundering schemes,” stated IRS Criminal research Special Agent in control man Ficco. “We are proud to do business with our police force lovers to research and prosecute people who try to enrich by themselves by fraudulent means. Charles Hallinan’s jail sentence is really a reminder there are detrimental effects because of this form of criminal behavior.”

Daniel Brubaker, Inspector in control of the usa Postal Inspection provider, Philadelphia Division, praised the investigatory work behind the conviction: “This workplace prides itself on investigating this particular unlawful behavior. We too are proud to own worked with this police force lovers to aggressively investigate people who scheme to prosper at the cost of other people.”

The scenario ended up being examined because of the Federal Bureau of research, Internal sales provider Criminal Investigations, therefore the united states of america Postal Inspection Service. Its being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Maria Carrillo.